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Are SPACS heading for a slowdown?

Are SPACS heading for a slowdown?
April 29, 2021

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Unlike the first quarter of 2021, when SPACs were all the rage, it seems like SPACs are falling out of favor in the second quarter. Of the 300+ SPACs that have gone public in 2021, not many of them have done so since March 25, and merger deals have also slowed down in April. Is this slowdown reflective of our previous report on the bubble bursting or just a temporary issue?

Nonetheless, we do know that there are 400-odd SPACs that are still seeking targets for mergers, a statistic that means that the option for private companies to leverage the speed of going public via SPAC is widely available. While SPACs have targeted companies in the EV, biotech, and greentech industries, as those industries' companies fit the criteria that SPACs love -- namely, high-growth with good long-term potential -- the number of SPACs versus the number of private companies looking to go public may be out of balance. This imbalance is why we predict that SPACs may now venture into other sectors, such as software companies, including cybersecurity, quantum computing, and even social media community companies. It is worth mentioning that despite a slowdown, this month also saw the world’s largest SPAC merger with Grab.

Major SPAC mergers in April
🚖 Grab: Southeast Asia’s largest ride-hailing company
Acquirer: Altimeter Growth Corp

Valuation: $39.6BN

📱 Cellebrite Mobile: Israel’s digital forensics technology company that helps public safety agencies like the police hack phones
Acquirer: TWC Tech Holdings II

Valuation: $2.4BN

🤖 Vicarious Surgical: Designs surgical robots
Acquirer: D8 Holdings

Valuation: $1.1BN

⚕️ Sema4: AI-driven genomic & clinical data platform company
Acquirer: CM Life Sciences
Valuation: $793MM

⚾️ The Topps Company: Manufacturer of candy, gum, and tradable collectibles including NFTs
Acquirer: Mudrick Capital Acquisition Corporation II

Valuation: $1.3BN

🤖 Sarcos: Manufactures and designs mobile, dexterous robotic systems
Acquirer: Rotor Acquisition

Valuation: $1.3BN

💉 Better Therapeutics: Digital therapeutics company focused on diabetic treatment
Acquirer: Mountain Crest Acquisition Corp. II

Valuation: $57.5MM

🏥  Tango Therapeutics: Biotech company developing precision medicine for people to cure cancer
Acquirer: BCTG Acquisition

Valuation: $167MM

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Since last week, PrivCo has added:
655 Companies | 201 Funding Activities | 111 M&A Deals

Funding & Deal Highlights:

Sysdig raises $188MM led by Premji Invest
Cyber Security Software & Internet Services • Round F • Davis, CA

Step raises $100MM led by General Catalyst Partners
Fintech Software & Internet Services • Round C • Palo Alto, CA

Automox raises $110MM led by Insight Partners
Cloud Automation Software & Internet Services • Round C • Boulder, CO

Current raises $220MM led by Andreessen Horowitz
Fintech Software & Internet Services • Round D • New York, NY

Cavamezze Grill raises $190MM
Restaurants • Round F • Rockville, MY

Illumio raises $250MM from Thoma Bravo
Cyber Security Software & Internet Services • Equity • Sunnyvale, CA

Empyrean Solutions raises $74M
Finance Software & Internet Services• Equity • Woburn, MA

Madre Mexcal raises $3MM led by Room 9
Food & Beverage Producers • Round A • Pacific Palisades, CA

Ophelia raises $15MM
Mental Health Software & Internet Services • Round A • New York, NY

OneMain Financial Holdings acquires Trim 
Fintech Software & Internet Services • Acquisition • San Francisco, CA

Unilever acquires Onnit Labs
Specialty Retail • Acquisition • Austin, TX

Franklin Covey Company acquires Strive Talent for $20MM
Recruitment Software & Internet Services • Acquisition • San Francisco, CA

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